Obama To Outline Long-Term Plan To Respond To Oil Spill -Official

15th Jun 2010 23:47

By Jared A. Favole Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--President Barack Obama on Tuesday will use his debut speech from the Oval Office to outline a long-term plan to blunt the economic and environmental damages of an unprecedented oil catastrophe that has captivated the public and engulfed his presidency. Obama will also lay out a plan to help restore the Gulf coast and will say that BP PLC (BP,BP.LN) is expected to pay for the environmental damage caused by the disaster, a senior administration official said. He will also tell the nation that a third-party will oversee a $20 billion escrow fund to be paid by BP to help compensate those affected by the oil spill, according to a senior administration official. The speech comes as BP is capturing roughly 15,000 barrels of the 35,000 to 60,000 barrels of oil spewing out of the mile-deep well daily in the Gulf, and Obama is fighting to deaden growing criticism that his administration can't handle the fiasco. Some of that criticism was on display as Obama traveled by motorcade to Florida's Pensacola Beach Tuesday morning, where onlookers held signs reading "Day 55 still no skimmers" and "Enough photo ops" as well as signs saying "Thanks for your support Mr. President" and "Obama Rocks," according to reports of his trip. The highly anticipated speech is scheduled for 8 p.m. EDT in the Oval Office, a venue presidents use for speeches to address the nation in times of crisis, and comes after Obama's two-day trip to Mississippi, Alabama and Florida to survey the response to the disaster. Obama will also explain the need for changes to how the oil industry operates and is regulated to ensure such a disaster doesn't happen again. Obama has blasted the federal government's relationship with the oil industry and said tougher regulations are coming. He has already said that the main agency overseeing off-shore oil drilling, the Minerals Management Service, will be split so the arm that collects billions in oil royalties is separate from the division that enforces regulations. He has also placed a moratorium on some deep-water drilling in the Gulf and other areas, a step that has drawn a strong response from some Gulf residents who say it fuels the economic pain of the calamity. In his speech, he is expected to say that the decision on imposing a moratorium was difficult and will urge a presidential commission to quickly investigate and determine whether deepwater off-shore drilling can be continued safely, a senior administration official said. Obama told reporters Tuesday he will use the address to let the public know he wants BP to respond "quickly and fairly" to claims by fishermen and other business owners whose financial livelihoods are threatened if not imperiled by the disaster. Obama is expected to meet with a BP executive Wednesday at the White House, where they will discuss the escrow fund and claims. Obama will also tell the nation that the oil disaster should be viewed as showing the perils of relying on traditional fuel sources and stress that the country needs to fundamentally alter its focus toward renewable energy. -By Jared A. Favole, Dow Jones Newswires; 202.862.9256; [email protected] (END) Dow Jones Newswires June 15, 2010 18:47 ET (22:47 GMT)